LONDON (Alliance News) - Amiad Water Systems Ltd on Tuesday said revenue and pretax profit for 2015 will be ahead of expectations, allowing the company to reduce its debt more than the market expected.
The provider of water treatment and filtration products and services said revenue in the second half of 2015 was broadly flat from the first, as the momentum of its irrigation division continued throughout the year thanks to increased sales of its new Omega and Sigma filter products.
Amiad's oil & gas segment also continued to show an improved performance, with growth in the number of sales made in the US, Europe, the Middle East and Africa.
The irrigation division offers filtration products to farmers to assist them with treating and filtering water from its source to the farm site, whilst the oil & gas segment assists companies with managing water used in their operations.
On the flip side, Amiad said the division that cares for industrial customers and its municipal segment, which develops and manufacturers water treatment and filtration systems, continued to face headwinds due to macroeconomic conditions during 2015.
Amiad is expecting to return to profitability for the full year 2015, and said its pretax profit will be above market expectations after its cost-cutting programme launched at the end of 2014 yielded better-than-expected results. In 2014, Amiad suffered a USD429,000 pretax loss, swinging from a USD5.1 million pretax profit in 2013.
Net income for 2015 is expected to be markedly improved and above market expectations, due to a change in the mix of income between the group entities and by utilising losses in previous years to offset taxes, said Amiad.
Adding to the good news, the company said the significant improvement in performance during the year will allow it to significantly reduce its debt more than what the market was expecting.
Amiad will report its full-year results for the 2015 in March.
Amiad shares were up 6.3% to 164.75 pence per share on Tuesday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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